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Soonghee Lee Sung Woon Kang An amendment to the Act on Real Name Financial Transactions and Confidentiality (ARNFTC) was passed in the plenary session in the National Assembly on May 2 2014 and will come into effect on November 29 2014. This amendment prohibits parties to a financial transaction from entering into the transaction by another's real name (borrowed name transaction) and imposes a criminal and administrative penalty and civil disadvantages on the violators. The contents of the amendment include several main points. The amendment includes a prohibition on borrowed name transactions by parties to a financial transaction. The version of ARNFTC in force only imposes on financial institutions and others the duty to use the real name of the party to the financial transaction. Moreover, the existing ARNFTC leaves open the question of interpretation as to whether financial transactions not by a real name include borrowed name transactions. The amended ARNFTC prohibits borrowed name transactions by providing that 'it is prohibited to conduct financial transactions by using another person's real name for the purpose of hiding unlawful properties, money laundering, or providing funds for terrorism or avoidance of enforcement and any other illegal acts' and subjects offenders to a possible jail term of five years or less or fine of W50 million or less. However, the amended provisions limit the prohibited borrowed name transactions to cases where certain purposes are found, such as the hiding of unlawful properties. Moreover, although the amendment prohibits borrowed name transactions with the purpose of 'any other illegal acts', it does not provide the definition of 'illegal acts'; therefore, it is uncertain how the amendment will be applicable to transactions in practice.

Isil Ökten Aslihan Özbey The Capital Markets Board of Turkey (CMB) published the Communiqué Serial: III 59.1 on Covered Bonds (new Communiqué) in the Official Gazette on January 21 2014. The New Communiqué is part of regulatory improvements to Turkey's bonds and securitisation market. It introduces a consolidated legal framework regulating asset-covered bonds and mortgage-covered bonds. In order to clarify certain issues under the new Communiqué and to make the issuance of covered bonds more effective in Turkey, the CMB recently published an amendment to the new Communiqué (amended Communiqué). According to the new Communiqué, if any cash collection is made from the assets in the pool, the issuer must either: (i) record the proceeds to the cover registry; (ii) remove the cash from the cover registry for the payments of the covered bonds; or (iii) replace the cash with the new security assets. One of the major amendments to the new Communiqué introduced by the amended Communiqué is that now the issuer is free to use the cash proceeds provided that it complies with the statutory tests and all other liabilities.

Across Europe, many public-private partnerships are struggling. But a small majority of lawyers believe it’s premature to overhaul the funding model

Adam Freeman of Linklaters reports on the way the credit crisis has forced cross-border loans to evolve and adapt, focusing on the role of the US in driving change

Welcome to this year's Dispute Resolution Guide provides a wealth of information on some of the world's most promising markets. As well as a valuable update on the Choice of Court Convention

How the industry body is guiding the market on financing techniques – from European high yield issuers to investors active in cov-lite deals

Deutsche Bank’s Chronis Anoustis explains how covenant packages are mirroring investor appetite and corporate issuers’ health in European high yield

The Loan Market Association’s Clare Dawson explains the organisation’s work in Africa, and why CRD IV hasn’t affected deal structures

Christophe Bernasconi of the Hague Conference on Private International Law explains the benefits and progress of a global treaty on the effectiveness of choice of court agreements

Warranty and indemnity insurance is gaining traction in Asia. It promises to become an important tool in preventing post-deal disputes